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Yahoo own 40% of Alibaba, this deal valued Yahoo’s Alibaba stock on $12.8B. Yahoo has $2.6B in cash. Yahoo’s Market Capital is $17.66B
So it has only $17.66B-$12.8B-$2.6B = 2.26B premium. It is about $1.87 per share. I means investor pays only $1.87 per share to own all yahoo’s business. So the price of Yahoo is super cheap and attractive now. This $1.87 makes yahoo’s P/E ratio at only 2, this is a super low PE.
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"Quattrone’s job today also remains essentially the same as it was a decade ago: fetch the highest price for technology clients.
He has done exactly that. Since the start of 2010, Qatalyst has advised nearly a dozen publicly listed companies. While the typical tech firm sells for 37 percent more than where its shares were trading four weeks prior to the deal announcement, according to Thomson Reuters data, Quattrone’s clients garnered premiums of about 70 percent."
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Yahoo will be acquired soon, I guess above $25 1 comment
http://www.thestreet.com/_yahoo/story/11257183/1/alibaba-gets-16-billion-investment.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Yahoo own 40% of Alibaba, this deal valued Yahoo’s Alibaba stock on $12.8B. Yahoo has $2.6B in cash. Yahoo’s Market Capital is $17.66B
So it has only $17.66B-$12.8B-$2.6B = 2.26B premium. It is about $1.87 per share. I means investor pays only $1.87 per share to own all yahoo’s business. So the price of Yahoo is super cheap and attractive now. This $1.87 makes yahoo’s P/E ratio at only 2, this is a super low PE.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
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Based on his success w/ getting a premium for Motorola Mobility, YHOO should hire Frank Quattrone."
here's a link to the article:
http://nyti.ms/nayZkV...
highlights:
"Quattrone’s job today also remains essentially the same as it was a decade ago: fetch the highest price for technology clients.
He has done exactly that. Since the start of 2010, Qatalyst has advised nearly a dozen publicly listed companies. While the typical tech firm sells for 37 percent more than where its shares were trading four weeks prior to the deal announcement, according to Thomson Reuters data, Quattrone’s clients garnered premiums of about 70 percent."
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